Stacey's Buffet, Inc.

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International Guild of Hospitality & Restaurant Managers

Business Summary
OTC: SBUFQ

Financial Summary

Stacey's Buffet owns and operates a chain of 21 restaurants (as of 12/31/97) in Florida and the Northeast. The Company also licenses one restaurant in Florida. For the 12 weeks ended 3/25/98, sales fell 30% to $7.1 million. Net loss totalled $2.2 million vs. an income of $700 thousand. Revenues reflect fewer operating restaurants and a decline in same store sales. Loss also reflects a $1.1 million sales tax assessment charge and $533 thousand in restaurant closings and $622 thousand in impairment charges.

Extended Business Summary

Stacey's Buffet, Inc. consists of a chain of buffet-style restaurants, primarily in the southeastern United States. The Company's restaurants, operating under the name Stacey's Buffet, offer a broad selection of American and ethnic menu items as complete meals in a self-service, fixed-price buffet format. At December 31, 1997, there were 17 Company-owned Stacey's Buffets located in Florida and two Stacey's Buffets located in the Northeast; one each in Pennsylvania and New Jersey. Additionally, there was one licensed Stacey's Buffet located in Florida. Since that date, the Company has sold four restaurants in Florida.

The Company was originally incorporated to develop and operate a chain of buffet restaurants under the name Homestyle Buffet, Inc. In December 1993, the Company merged with a rival private buffet chain called Stacey's Buffet, which was owned by the Stacey Lynn Group (S-L Group). S-L Group operated 11 buffet restaurants and licensed eight buffet restaurants, all under the name Stacey's Buffet. S-L Group merged into Homestyle Buffet, Inc., which changed its name to Stacey's Buffet, Inc.

The Company's restaurants feature a wide variety of menu items presented in the buffet format, providing complete meals for lunch and dinner. During fiscal 1997, lunches were priced at $5.29 and dinners from $5.90 to $7.25 depending upon the restaurant's market area and day of the week. In addition, the Company has special pricing for children ages 10 and under. Children aged three and under eat free. Older customers (Seniors) may join the Company's 55 Plus Club, which gives them a discount on meals throughout the year. Barring special circumstances, the Company's restaurants are open every day of the year, except Christmas Day. The style and decor of the restaurants is designed to provide a casual atmosphere. The Company intends its restaurants to be particularly attractive to families and Seniors. The Company has actively pursued a strategy of keeping prices as low as possible while relying on volume to keep costs per customer low.

Stacey's Buffet restaurants generally offer more than 100 menu items, including a 40-item salad bar, home-style soups, pizza, hand-carved roast beef, turkey or ham, a variety of hot vegetables, numerous casseroles, baked dishes, warm fresh baked breads and an extensive selection of desserts and beverages.

Most Stacey's Buffet restaurants present their menu items in a "scatter bar" format. Guests proceed to the food bars of their choice. These bars include a fresh salad bar with many choices and toppings. Other bars also offer vegetables, cream soups, and pizza.

Hot food bars serve baked and fried chicken and fish, along with other entrees. Casseroles, baked dishes and special offerings change daily. Hot, fresh baked breads are distributed on the bars. They include banana nut bread, dinner rolls, corn muffins and cinnamon rolls. Guests can choose from a number of hot meat entrees, plus two carved items at dinner. A beverage bar offers milk, coffee, tea and popular soft drinks. No alcoholic beverages are served. Additionally, a separate dessert bar is offered. This bar features bread pudding, homemade cobblers, cakes, pies, and hand-dipped or soft-serve ice cream.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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